NIKE, Inc. Announces New Consumer Direct Offense: A Faster Pipeline to Serve Consumers Personally, At Scale

BEAVERTON, Ore.–([1])–NIKE, Inc. (NYSE: NKE) today introduced the Consumer Direct Offense, a
new company alignment that allows Nike to better serve the consumer
personally, at scale. Leveraging the power of digital, Nike will drive
growth—by accelerating innovation and product creation, moving even
closer to the consumer through Key Cities, and deepening one-to-one

“The future of sport will be decided by the company that obsesses the
needs of the evolving consumer,” said Mark Parker, NIKE, Inc. Chairman,
President, and CEO. “Through the Consumer Direct Offense, we’re getting
even more aggressive in the digital marketplace, targeting key markets
and delivering product faster than ever.”

Consumer-focused Growth

Trevor Edwards, President of the NIKE Brand, will drive the Consumer
Direct Offense through integrated category, geography, marketplace,
product, merchandising, digital, and direct-to-consumer teams.

In the new alignment, the company will drive growth by deeply serving
consumers in 12 key cities, across 10 key countries: New York, London,
Shanghai, Beijing, Los Angeles, Tokyo, Paris, Berlin, Mexico City,
Barcelona, Seoul, and Milan. These key cities and countries are expected
to represent over 80 percent of Nike’s projected growth through 2020.

Nike is moving closer to the consumer—creating a local business, on a
global scale. To improve efficiency, all key cities and countries are
supported by a simplified geography structure, changing from six to
four—comprised of North America; Europe, Middle East and Africa (EMEA);
Greater China; and Asia Pacific and Latin America (APLA). The leaders of
the newly-formed geographies are: Tom Peddie VP/GM of North America,
Bert Hoyt VP/GM of EMEA, Angela Dong VP/GM of Greater China, and Ann
Hebert VP/GM of APLA.

As such, financial results for the NIKE Brand will be reported based on
these four operating segments beginning in fiscal 2018.

The geography leaders will report to Elliott Hill, President of
Geographies and Integrated Marketplace.

Nike’s Triple Double

The Consumer Direct Offense is fueled by Nike’s Triple Double strategy:
2X Innovation, 2X Speed and 2X Direct connections with consumers.

To double innovation, Nike will accelerate the impact and cadence of new
innovation platforms. As an example, over the past few months, Nike
launched a cushioning revolution, featuring three new groundbreaking
platforms: ZoomX, Air VaporMax and Nike React. And, to give consumers
more choices of the products they love, Nike is editing to
amplify—reducing its styles by 25 percent, and offering a deeper
selection of key franchises.

To double speed, Nike is on a path to cut product creation cycle times
in half. That starts with the Express Lane, which quickly creates,
updates and fulfills products in response to consumer demand. Already
operating in North America and Western Europe, a new Express Lane will
be activated this summer in China, serving Shanghai, Seoul and
Tokyo—some of the world’s most promising markets for sport.

To supercharge this faster pipeline, Michael Spillane is assuming the
new role of President of Categories and Product—leading an end-to-end
design-to-delivery organization, including Categories, Design, Product
and Merchandising. This new integrated organization will place greater
resources in the categories with the highest potential to fuel growth:
Running, Basketball, Nike Sportswear, Men’s and Women’s Training, Global
Football and Young Athletes. To build on the growth of the Nike Women’s
business, a new dedicated Women’s team will complement each top-tier

To double direct connections with consumers and shape the future of
retail, Nike is creating the new Nike Direct organization, led by Heidi
O’Neill, President of Nike Direct, and Adam Sussman, Chief
Digital Officer. This organization will unite[2],
Direct-to-Consumer retail, and Nike+ digital products to enhance and
expand Nike’s membership experience on an increasingly global scale.
Nike will also extend innovations to its strategic wholesale partners.

Leading with mobile, this team will unite physical and digital retail to
serve consumers with the best of Nike. Two recent examples of innovative
consumer connections are SNKR Stash, which unlocks access to
exclusive Nike and Jordan product using mobile geo-locations; and Shock
, surprise alerts for coveted sneakers that allow consumers to
buy instantly through the app or at their nearest Nike or wholesale
store. Over the next several months, Nike is also launching its Nike+
and SNKRS apps globally to energize the sneaker experience in new

Spillane, Hill, O’Neill and Sussman will all report to Edwards.

Nike’s leadership and organizational changes will streamline and speed
up strategic execution. The changes are also expected to result in an
overall reduction of approximately 2 percent of the company’s global

“Today we serve our athletes in a changing world: one that’s faster and
more personal,” said Edwards. “This new structure aligns all of our
teams toward our ultimate goal—to deliver innovation, at speed, through
more direct connections.”

About NIKE, Inc.

NIKE, Inc., based near Beaverton, Oregon, is the world’s leading
designer, marketer and distributor of authentic athletic footwear,
apparel, equipment and accessories for a wide variety of sports and
fitness activities. Wholly-owned NIKE, Inc. subsidiary brands include
Converse, which designs, markets and distributes athletic lifestyle
footwear, apparel and accessories; and Hurley, which designs, markets
and distributes surf and youth lifestyle footwear, apparel and
accessories. For more information, NIKE, Inc.’s earnings releases and
other financial information are available at[3].
Individuals can also visit[4]
and follow @Nike.


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